I am pleased to present the U.S. Department of Transportation's Annual Report on New Starts, which makes recommendations on the allocation of funds for new fixed guideway systems and extensions for Federal Fiscal Year 2003. This report is submitted in response to the requirements of 49 U.S.C. 5309(o)(1).

Identical letters have been sent to the Chairman and Ranking Minority Member of the House Committee on Transportation and Infrastructure, and the Chairman of the Senate Committee on Banking, Housing and Urban Affairs. We have also provided copies of this report to the Transportation Subcommittees of the Appropriations Committees of both the House and Senate.